PA Consulting Group

PA Consulting Group (formerly Personnel Administration) is a management consultancy that specialises in strategy, technology and innovation. Founded to support the UK’s war efforts in 1943 by Ernest E. Butten, Tom H. Kirkham and Dr David Seymour, who had codified a human-centred approach to boosting productivity, PA grew to become the world’s largest management consultancy by headcount in 1970. PA’s human approach to innovation is still in evidence today, with the company again supporting the UK Government through a time of crisis by helping scale production of ventilators during the 2020 COVID-19 pandemic.[3]

PA Consulting Holdings Limited
FormerlyPersonnel Administration
Type
Founded1943 (1943)
Founders
  • Ernest E. Butten
    • Tom H. Kirkham
    • Dr David Seymour
Headquarters
London
,
UK
Number of locations
19[2]
Key people
  • Ken Toombs, CEO
  • John Alexander, Chairman
Revenue£500.5m[1] (2019)
£94.6m[1] (2019)
Number of employees
3,200[1] (2019)
Websitewww.paconsulting.com
Engineers manufacture ventilators at pace while socially distancing to support the UK's fight against COVID-19

Today, PA employs more than 3,200 people globally,[1] with a focus on experienced industry professionals who can help it deliver its stated purpose of ‘Bringing Ingenuity to Life’. It is also growing rapidly, acquiring six specialist consultancies and innovation firms since December 2017 - Nyras, a UK-based international aviation consultancy;[4] Sparkler, a leading London-based digital insight and strategy consultancy;[5] Boston, Massachusetts-based Essential Design, an innovation strategy and product design business;[6] London-based We Are Friday, a digital service design and engineering agency;[7] 4iNNo, an innovation company based in Cincinnati, Ohio;[8] and Astro Studios, a brand strategy and product design agency based in San Francisco.[9]

PA has clients in both the private and public sector, ranging from start-ups to national governments. Specifically, PA specialises in eight industries: consumer and retail; defence and security; energy and utilities; financial services; public services; healthcare and life sciences; manufacturing; and transport. It operates in these industries from offices across the UK, US and the Nordics.[2] It has also become a key member of the Ellen MacArthur Foundation's CE100,[10] a collection of global organisations driving towards a Circular Economy, the United Nations Global Compact, a non-binding UN pact that encourages businesses to adopt sustainable practices, and the WePROTECT Global Alliance,[11] a network of governments and companies aiming to tackle online child exploitation and abuse. PA has also produced the first two Global Threat Assessments for WePROTECT.[12][13]

The company is privately held, with 52.3% of shares owned by The Carlyle Group and the remaining 47.7% owned by current and former employees.[1] Staff can buy shares during an annual share-trading period.

History

1940–1950

PA was founded in 1943 as Personnel Administration by Ernest E. Butten, Tom H. Kirkham and Dr David Seymour. Britain's war effort created great demand for munitions and goods, which had to be produced by a relatively unskilled workforce. Butten and his colleagues formed Personnel Administration Limited to provide advice to industry as to how to improve the productivity of their workers.[14][15] Like the other three firms that dominated consulting in the 1940s, '50s and '60s, PA was an offshoot of the pre-war Bedaux Company.[16] Bedaux in turn had been developed based on 'scientific management' theories of Frederick Winslow Taylor and Frank Gilbreth. Butten sought to take the mechanistic and task-orientated concepts of scientific management and add a human dimension to them. The chief idea, along the lines of Douglas McGregor's 'Theory Y', was that by involving the worker in the process of change and a suitable form of ownership, greater gains could be made both by the worker and the organisation.[17]

PA's first assignment was to train housewives to assemble the tail gun section for the Avro Lancaster bombers, as part of Britain's policy of bringing women into the factories in order to free up male workers for the armed forces.[15][18] By 1964, the company had dropped the name Personnel Administration and was known as simply PA Consulting Group.[19]

1950–1970

PA expanded over the next 20 years, and by 1970 it was the world’s largest management consulting firms by headcount.[20] PA had also expanded geographically, mostly along the lines of the Commonwealth, with its operation in Australia providing about a third of the firm's revenue.[21]

In the 1960s, PA diversified its business significantly by developing the use of the 'newspaper box' advertisement for recruitment.[21]

Butten retired from PA in 1970, having earlier sold his 100% shareholding in PA to the Butten Trust in 1958. The Trust was intended as a long-term guardian of PA's fortunes and an assurance that the company would be 'owned by the employees'.[22]

1970–1992

PA's strength during this period was in the firm's work advising companies on potential applications of technology to business issues. Arising out of this success, major technology centres were built in Melbourn, UK, and Princeton, USA.[23]

Towards the end of the '80s, after an upsurge in the industry, PA's management decided it wanted to take the firm public. The Butten Trust, after an application to the courts in the UK, agreed to give 15% of its shares to its employees as part of a long-term plan to float. However, the company suffered in the subsequent consulting industry downturn of 1989 to 1992 and changed its strategy to one of staff ownership.

1992–2015

Between 1991 and 1994, PA reduced its workforce by almost half. In 1992, Jon Moynihan was appointed as chief executive of PA, with a remit to turn the company around. With a new strategy, aggressive cost-cutting and an industry upturn, the turnaround succeeded and, in 1995, PA made record profits.[24][25]

Jeremy Asher became group CEO in 1998 and, during his three-year tenure, PA grew from about 2,500 staff to just under 4,000.[26][27] The firm expanded significantly in the United States through the acquisition of Hagler Bailly Inc. in 2000 for around $96 million in cash.[28]

PA revenues suffered during the consulting recession of 2001-2004, but saw a significant recovery between 2004 and 2006. This helped it to increase its focus on ventures, with 50% of PA's return to its main shareholder between 2002 and 2006 came from non-consulting activities.[29] This included the sale of a number of subsidiaries including UbiNetics, Volume Product Technology and Meridica.[18] By 2005, the company was ranked 8th in the Sunday Times' list of Britain's biggest mid-market private firms.[30]

Government figures released in 2010 showed that PA was the second largest beneficiary of UK Government contracts to consulting firms, receiving £11million over the first year of the coalition.[31] It has gained publicity for its work on analysing what it has called the zombie economy.[32][33] Other work includes its annual survey of opinion in higher education,[34] and ongoing technological innovations, including a new type of round kitchen towel.[35]

On 31 December 2013, Jon Moynihan retired as executive chairman,[36] and was replaced by Marcus Agius, the former chairman of Barclays Bank.[37] In March 2014 the company launched a new logo (the third in its history), a new visual identity and redesigned website.[38] Also in March 2014, Health Select Committee member Sarah Wollaston MP questioned PA Consulting's uploading of a pseudonymised extract of Hospital Episode Statistics to Google BigQuery.[39][40] The Health and Social Care Information Centre confirmed that PA had used the data in accordance with the information sharing agreement in place.[40][41]

2015–present: Private equity investment and expansion

In 2015, The Carlyle Group bought a majority stake in the company, giving it a value of USD 1 billion.[42][43].Since the Carlyle investment, PA has grown significantly.

In October 2017, PA started acting on its plans for rapid expansion by relocating its global corporate headquarters. The firm moved from its 25-year home of 123 Buckingham Palace Road, London, to newly built offices at 10 Bressenden Place, taking over two floors of the office block in the heart of Westminster.[44]

Then, in December 2017, the firm acquired Nyras, a UK-based international aviation consultancy. At the time, Nyras was the only consultancy in the air transport industry authorised by the Financial Conduct Authority to undertake commercial and transactional advisory services in the aviation sector.[4]

In April 2018, PA's Chairman, Marcus Agius, announced he would step down and assume the role of Deputy Chairman, with John Alexander replacing him. Alexander made the move from environmental and sustainability consultancy ERM, where he took the company through two rounds of private equity funding and grew the enterprise value from US$525 million to US$1.75 billion.[45] The next month, PA bought London-based Sparkler, a leading digital insight and strategy consultancy that works with the like of Microsoft, Diageo and Uber.[5]

By October 2018, the consultancy expanded its acquisitions into the United States, acquiring innovation strategy and product design business Essential Design. Based in Boston, Massachusetts, the company has helped Woodford Reserve bourbon to strengthen its brand and designed the Hydrow connected home rowing machine.[6]

In December 2018, PA bought another London-based company, the digital service design and engineering agency We Are Friday. They brought with them high-profile digital clients like HSBC, Nuffield Health and the British Red Cross.[7] In the same month, PA also announced it was appointing a new head of its Americas business, Ken Toombs, to drive rapid expansion in the United States. He brought 30-years experience in management consulting and moved to PA from his role as the Global Head of Infosys Consulting.[46]

Then, in June 2019, PA looked again to the US and acquired 4iNNo, an innovation company based in Cincinnati, Ohio.[8]

In February 2020, PA announced record fee income of £500 million and stated their plans to double its revenue in the next five years.[47]

Most recently, in June 2020, PA acquired San Francisco-based Astro Studios, a brand strategy and product design agency that works with the likes of Nike, Bose and Facebook.[9]

The group announced Ken Toombs as CEO in October 2020, following on from Alan Middleton who stepped down after 13 years at the consultancy.[48]

Technology and innovation
Remote-control "Panama" Land Rover with ground-penetrating radar to detect IEDs followed by Mastiff with Choker mine rollers

The company has a strong focus on technology dating back to its work with the earliest computers in the 1950s.[49] Its Cambridge Technology Centre, designed by Richard Rogers and founded by Professor Gordon Edge in 1970,[50] played a critical part in creating the Cambridge Phenomenon where the city became a leading centre for the UK’s technological companies.[51]

Innovations developed at the centre over the past 50 years include: the original brushless servo motor; medical injectors that mean the patient does not need to see the needle; a self-monitoring device for people with diabetes that measures blood glucose levels; micrometers; and 4G wireless test equipment. [15] During the Iraq War, PA Consulting developed the "Panama System" to protect UK troops from improvised explosive devices, winning the Management Consultancies Association's top prize for innovation. [52][53]

Airora is a device that can eliminate pathogens in the air using naturally occurring processes.

More recently, the Centre has made several significant advances to help deliver a more sustainable future. It developed the manufacturing equipment needed to mass produce edible water bottles for Notpla;[54] the strategy for Milliken & Company to improve the future of plastics sustainability;[55] and a device that uses natural processes to destroy the COVID-19 virus in enclosed spaces.[56]

PA ventures

PA's venture programme (PA Group Ventures) was established in 2000 to exploit the ideas and intellectual capital generated from its consulting work.[57]

Ventures include a third-generation mobile phone business called UbiNetics that was sold for a total of $133 million in 2005;[58][59] and Meridica - a drug delivery system company – that was sold to Pfizer for $125 million in 2004.[60] PA demerged its venture arm, Ipex Capital, in June 2008 although it continues to work closely with the company.[61]

Other recent ventures include:

Exacsys, which develops solutions to improve Point of Care (PoC) diagnostic systems. One application of this technology is the self-monitoring of blood glucose (SMBG) to help people manage their diabetes.[15]

ProcServe, which provides a cloud-based procurement system. The ProcServe Trading Network covers more than 17,000 organisations and is used by central government, and the National Police Procurement Hub, as well as commercial sector customers including Orange and Xerox.[62]

Argenti, a business that innovates telecare technology in partnership with local councils in the UK to improve adult social care.[63]

Awards and recognition

PA Consulting was one of four consultancy groups recognised in LinkedIn's top 25 UK companies to work for in 2017.[64] In 2018, PA Consulting was ranked second among the consulting firms with the most differentiated offering in the market.[65]

References
  1. "PA Consulting Annual Report and Accounts 2019" (PDF). PA Consulting. Retrieved 15 June 2020.
  2. "About us". PA Consulting. Retrieved 15 June 2020.
  3. Trapp, Roger (12 June 2020). "The Public Sector Is Central To The Recovery — And Here Is Why". Forbes. Retrieved 15 June 2020.
  4. "PA Consulting Group expands offer to the aviation sector through acquisition of Nyras Limited". PA Consulting. 6 December 2017. Retrieved 3 March 2020.
  5. "PA Consulting Group enhances innovation, digital insight and strategy expertise through acquisition of Sparkler". PA Consulting. 16 May 2018. Retrieved 3 March 2020.
  6. "PA Consulting enhances global innovation and product design capability through acquisition of Essential Design". PA Consulting. 31 October 2018. Retrieved 3 March 2020.
  7. "PA Consulting grows innovation and digital expertise with the acquisition of We Are Friday". PA Consulting. 6 December 2018. Retrieved 3 March 2020.
  8. "PA Consulting extends innovation expertise with 4iNNO joining the team in the Americas". PA Consulting. 28 June 2019. Retrieved 3 March 2020.
  9. "Brand strategy and product design agency Astro Studios joins PA Consulting". PA Consulting. 23 June 2020. Retrieved 8 September 2020.
  10. "PA Consulting Group joins the Ellen Macarthur Foundation Circular Economy 100 programme". PA Consulting. 10 April 2017. Retrieved 3 March 2020.
  11. "Protecting children from online sexual exploitation". PA Consulting. May 2014. Retrieved 3 March 2020.
  12. "WeProtect Summit and report". PA Consulting. August 2017. Retrieved 3 March 2020.
  13. "WeProtect Global Threat Assessment". PA Consulting. November 2019. Retrieved 3 March 2020.
  14. The story of the PA Consulting Group 1943-1992, Christine Jackson and Mark Smalley
  15. Pagano, Margareta (30 January 2011) A perfect partnership between the geeks and suits The Independent
  16. Kipping Matthias Management Consultancies and Organizational Innovation in Europe in Pérez, Paloma Fernández and Rose, Mary (Eds) Innovation and Entrepreneurial Networks in Europe p.66, Routledge, 2009. ISBN 1135213801
  17. Ernest Butten Obituary - The Times (London, England), Tuesday, 26 March 1985; pg. 14; Issue 62096.
  18. Power, Helen (15 August 2008) Britain's biggest private companies: Expertise at your service The Daily Telegraph
  19. The Times Monday 1 June 1964, p.19, Issue:56026
  20. Hill, Andrew (11 November 2013) Change ripples through fish tank FT.com
  21. The story of the PA Consulting Group 1943-1992’, Christine Jackson and Mark Smalley
  22. The Times, 26 March 1985, Ernest Butten obituary
  23. The story of the PA Consulting Group 1943-1992’, by Christine Jackson and Mark Smalley
  24. Inspirational Chief works wonder for PA Consulting, Sunday Times 7 March 1999
  25. Hill, Andrew (22 December 2013) Jon Moynihan, the consummate consultant FT.com
  26. 2 November 1999 (Tewksbury) PROFILE: JEREMY ASHER - This man enjoys watching his employees run in accountancyage.com
  27. Jeremy Asher - Executive Profile Business Week | Tower Resources Plc
  28. (20 June 2000) Company News; Hagler Bailly agrees to purchase by PA Consulting The New York Times
  29. PA Annual Reports, 2002, 2003, 2004, 2005, 2006
  30. Britain's biggest mid-market private firms - The Sunday Times (London, England), Sunday, 9 October 2005; pg. 6[S9]; Issue 9450.
  31. Hope, Christopher and Quilty-Harper, Conrad (19 November 2010) Coalition spends more than £200m on consultants, PR and marketing The Daily Telegraph
  32. (13 November 2012) 'Zombie' companies eating away at economic growth BBC News Online
  33. Ahmed, Kamal (7 November 2009) Zombies are lurking on every high street The Daily Telegraph
  34. Garner, Richard (24 June 2013) Up to 30 universities 'could close or face merger' because of government reforms and dwindling student numbers The Independent
  35. Chapman, Jenny (11 December 2012) Brains Factory - from bomb disposal . . . to paper towels Cambridge News
  36. (10 June 2013) UPDATE: PA Consulting Group Executive Chairman Jon Moynihan Announces Plan to Retire Yahoo! Finance
  37. Quinn, James (20 November 2013) Aguis to Chair PA Consulting The Daily Telegraph
  38. (4 March 2014) PA celebrates 70 years of innovation with new logo re-branding theconsultant.eu
  39. Ramesh, Randeep (3 March 2014). "NHS England patient data 'uploaded to Google servers', Tory MP says". The Guardian. Retrieved 19 February 2018.
  40. Sharwood, Simon (4 March 2014). "Triple-headed NHS privacy scare after hospital data reach marketers, Google". The Register. Retrieved 19 February 2018.
  41. "Statement: Use of data by PA consulting". Health and Social Care Information Centre. 3 March 2014. Retrieved 19 February 2018.
  42. Becker, Nathan (29 September 2015). "Carlyle Takes 51% Stake in U.K.'s PA Consulting". Wall Street Journal. ISSN 0099-9660. Retrieved 18 May 2016.
  43. Interactive, Haymarket Business. "Why private equity firm The Carlyle Group bought PA Consulting". www.managementtoday.co.uk. Retrieved 18 May 2016.
  44. "PA Consulting Group relocates headquarters to 10 Bressenden Place". PA Consulting. 9 October 2017. Retrieved 3 March 2020.
  45. "Marcus Agius Announces His Intention to Move From Chairman of PA Consulting Group to Deputy Chairman". PR Newswire. 3 April 2018. Retrieved 3 March 2020.
  46. "Veteran consulting exec Ken Toombs to lead PA Consulting's Americas team". Consultancy.org. 19 December 2018. Retrieved 3 March 2020.
  47. "PA Consulting aims to grow into £1 billion firm by 2024". www.consultancy.uk. 20 February 2020. Retrieved 8 October 2020.
  48. "Ken Toombs named Chief Executive Officer of PA Consulting". www.consultancy.uk. 5 October 2020. Retrieved 8 October 2020.
  49. "PA Technology Heritage - world-class innovations that have stood the test of time". PA Consulting. Retrieved 15 June 2020.
  50. Professor Gordon Edge - 1990 Archived 23 August 2015 at the Wayback Machine brunel.ac.uk - Brunel People
  51. Quested, Tony (12 June 2013) Cambridge Tech Consultancies Rule the World businessweekly.co.uk
  52. Interactive, Haymarket Business. "Why private equity firm The Carlyle Group bought PA Consulting". www.managementtoday.co.uk. Retrieved 18 May 2016.
  53. Baxter, Andrew (12 November 2012). "'Panama': Groundbreaking project aids UK troops". Financial Times. ISSN 0307-1766. Retrieved 18 May 2016.
  54. Sweeney, Kate (16 May 2018). "Seaweed extract drink containers designed to end plastic bottles shame". Business Weekly. Retrieved 15 June 2020.
  55. "PDeveloping a strategy for more sustainable plastics". PA Consulting. Retrieved 15 June 2020.
  56. "Reducing the Risk of Transmission of COVID-19 and Other Diseases Using a New Device That Attacks Pathogens in the Air and On Surfaces". PR Newswire. 18 May 2020. Retrieved 15 June 2020.
  57. Advisers harness home-grown ideas,. Financial Times 1 September 2005
  58. (25 May 2005) UbiNetics test arm sold to Aeroflex electronicsweekly.com
  59. (28 July 2005) CSR buys 3G software firm Ubinetics electronicsweekly.com
  60. (23 September 2004) COMPANY NEWS; PFIZER ACQUIRES REST OF MERIDICA FOR $125 MILLION The New York Times
  61. Hill, Andrew. "Jon Moynihan, the consummate consultant". Financial Times. ISSN 0307-1766. Retrieved 18 May 2016.
  62. "Digital procurement 'could save councils millions' | Local Government Executive". www.localgovernmentexecutive.co.uk. Retrieved 18 May 2016.
  63. "Talking Alexa: how assistive technology can help adult social care services | Community Care". www.communitycare.co.uk. Retrieved 16 June 2020.
  64. "LinkedIn Top Companies 2017: Where the UK wants to work now". www.linkedin.com. Retrieved 2 March 2020.
  65. "The consulting firms with the most differentiated offering in the market".
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.